[CTC] U.S., Mexico resolve Panasonic auto parts plant labor dispute

[Arthur Stamoulis]

Pieces from Reuters, Rethink Trade and USTR below…


https://www.reuters.com/technology/us-mexico-announce-resolution-panasonic-plant-labor-dispute-ustr-2022-07-14/ <https://www.reuters.com/technology/us-mexico-announce-resolution-panasonic-plant-labor-dispute-ustr-2022-07-14/> 

U.S., Mexico resolve Panasonic auto parts plant labor dispute

7/14/22


WASHINGTON, July 14 (Reuters) - The United States and Mexico announced a resolution to a dispute at a Panasonic auto parts plant in Mexico on Thursday, with the company saying it would renounce an agreement with a union that lacked lawful bargaining authority, the U.S. Trade Representative said.

The agreement involved the Panasonic Automotive Systems facility in the northern border city of Reynosa, Mexico, "where workers were previously denied their freedom of association and collective bargaining rights," the USTR said in a statement.

In addition to scrapping a bargaining agreement with a union that lacked authority, the Panasonic plant agreed to remove the union, reimburse workers for union dues deducted from paychecks, and recognize an independent union, SNITIS, USTR said. Panasonic also agreed to offer to hire back workers who had been dismissed after what they said was a reprisal for backing SNITIS.

Panasonic did not immediately respond to a request for comment. The company previously said it respects rights to free association and collective bargaining and that it did not believe they had been denied.

Mexico's Labor Ministry said all of the issues raised in the investigation had been resolved, and that it would monitor the plant to ensure the re-hired workers could freely support the union of their choice.

U.S. Trade Representative Katherine Tai in May asked the Mexican government to review the matter under the United States-Mexico-Canada Agreement’s Rapid Response Labor Mechanism.

"Today’s announcement is yet another example of the Biden-Harris Administration’s commitment to defending the rights of workers, including those that live beyond our borders," Tai said in the statement.

The incident marked the third U.S. labor complaint under a new trade deal that aims to improve workplace conditions in Mexico.

In June, Panasonic and the recently elected SNITIS union agreed to a 9.5% salary increase as part of a new contract, which will be implemented if approved in a workers' vote.


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For Immediate Release: July 14, 2022
Press Contact: Robyn Shapiro  rshapiro at economicliberties.us <mailto:rshapiro at economicliberties.us>

Rethink Trade Celebrates Successful Resolution of USMCA Panasonic Reynosa Labor Rights Case 
 
 
Washington, D.C. — Today, the U.S. Trade Representative (USTR) announced <https://ustr.gov/about-us/policy-offices/press-office/press-releases/2022/july/united-states-announces-successful-resolution-rapid-response-labor-mechanism-matter-panasonic-auto> the successful resolution of the case it initiated regarding violations of workers’ USMCA-protected labor rights at a Panasonic Automotive Systems de Mexico S.A. de C.V. plant in response to a petition filed on April 18 by Sindicato Nacional Independiente de Trabajadores de Industrias y de Servicios Movimiento 20/32 (SNITIS) and Rethink Trade. In response to a deal negotiated between SNITIS and Panasonic and the U.S. government’s announcement on the RRM case, Rethink Trade issued the following statement.
 
“Just three months after we filed an RRM complaint, Panasonic had to recognize SNITIS as the workers’ legitimate representative, go to the negotiating table and agree to materially improve its employees’ wages, plus the company agreed to reinstate workers that were illegally fired in retaliation for standing up for their rights,” said Daniel Rangel, an attorney with Rethink Trade who petitioned for a case to be initiated. “This is a resounding victory. Rethink Trade commends USTR and the U.S. Department of Labor for their commitment to workers’ rights in the global economy and applauds SNITIS fierce struggle for union democracy in Mexico,” 
 
“It is evident that Chapter 23 of the USMCA and its Rapid Response Mechanism are key tools for workers to demand respect for their rights of freedom of association and union democracy,” said Susana Prieto Terrazas, labor leader and member of the Mexican Congress.“Panasonic was not the first and will not be the last case of labor rights violations that we will denounce. There is no going back in our fight in favor of human and labor rights of Mexican people.”
 
Under the USMCA Rapid Response Mechanism (RRM), Mexico had 45 days to report findings of a review it was required to conduct on the matter in response to USTR’s action. During this timeframe, with the spotlight of the RRM case illuminating the conflict, SNITIS and Panasonic engaged in discussions that led to Panasonic recognizing SNITIS as the legitimate representative of its workforce, and a 13% raise for Panasonic employees and reinstatement and backpay to workers who were allegedly terminated for participating in union activity.
 
ADDITIONAL BACKGROUND
In October 2021, workers rejected an existing labor contract at Panasonic’s Reynosa facilities during the USMCA-required legitimization process. A dire labor conflict erupted as the firm began colluding with an employer-captured “protection” union, affiliated to the Confederación de Trabajadores de México (CTM), and local authorities to try force a new CBA on workers that they have not approved. That contract was negotiated by the CTM union that does not lawfully represent them.
 
After workers voted down the preexisting CBA last fall, SNITIS filed for a certificate to represent the Panasonic employees and negotiate a new contract. The CTM union, Sindicato Industrial Autónomo de Operarios en General de Maquiladoras de la República Mexicana(SIAMARM), also petitioned to do so. Since two unions were disputing the right to represent the workers, Mexican federal authorities called for a union election to be held on April 21 and 22, 2022. 
 
The USMCA RRM petition that Mexico was filed on April 18, 2022 by independent union Sindicato Nacional Independiente de Trabajadores de Industrias y de Servicios Movimiento 20/32 (SNITIS) and Rethink Trade. Tensions had escalated at Panasonic’s Reynosa plant leading to the April 21-22 union election. Panasonic fired workers who supported independent union SNITIS and tried to impose an unapproved collective bargaining agreement made with a contested “protection” union linked to the notorious CTM federation that is tied to a conservative political party. 
 
Despite a threatening environment created by the CTM union and its reported attempts to influence the outcome of the election by bribing workers in exchange for votes, Panasonic’s workforce voted overwhelmingly in favor of independent union SNITIS. SNITIS received 1,200 votes while only 390 eligible workers casted their votes for CTM. Find links to video of CTM officials threatening the independent union and more about the recent vote, here <https://twitter.com/DanielRangelJ/status/1518717931781304323>.
 
After the vote, Panasonic announced <https://www.reuters.com/world/americas/panasonic-workers-mexico-elect-independent-union-defeating-top-labor-group-2022-04-23/> that “it respected and supported its employees' right to free association and looked forward to working with SNITIS once it is officially registered as the factory's new union.” Yet Panasonic continued to interact with the protection union as if it had won the election even after SNITIS was recognized as the legitimate representative of the workers by the government. 
 
On May 18, 2022, United States Trade Representative Katherine Tai announced that the United States had asked Mexico to review whether workers at the Panasonic Automotive Systems de Mexico facility in Reynosa, State of Tamaulipas, were being denied the rights of free association and collective bargaining. The Government of Mexico accepted the complaint on June 1, 2022. The rapid response of both the U.S. and Mexican governments prompted Panasonic to the negotiating table.
 
Rethink Trade <https://rethinktrade.org/> is a program of the American Economic Liberties Project <https://www.economicliberties.us/>.
 
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FOR IMMEDIATE RELEASE
July 14, 2022
 
CONTACT: media at ustr.eop.gov <mailto:media at ustr.eop.gov> 
United States Announces Successful Resolution of Rapid Response Labor Mechanism Matter at Panasonic Auto Parts Facility in Mexico
 
WASHINGTON – The United States and Mexico today announced the resolution to a situation at the Panasonic Automotive Systems facility in Reynosa, Mexico where workers were previously denied their freedom of association and collective bargaining rights.  This announcement comes after United States Trade Representative Katherine Tai requested the Government of Mexico review the matter under the United States-Mexico-Canada Agreement’s (USMCA) Rapid Response Labor Mechanism (RRM).  This announcement marks the third time the Office of the United States Trade Representative has successfully used the RRM to benefit workers.
 
“Today’s announcement is yet another example of the Biden-Harris Administration’s commitment to defending the rights of workers, including those that live beyond our borders. By enforcing labor rights under the USMCA, we are creating a more competitive North American economy where workers and businesses can operate on a level playing field,” Ambassador Katherine Tai said.  “I commend the Government of Mexico for coordinating a prompt and thorough resolution to the concerns raised by Mexican workers.”
 
“The Biden-Harris Administration’s trade policies continue to support the rights of workers across North America to freely organize unions and choose their own representatives,” U.S. Secretary of Labor Marty Walsh said. “By invoking the USMCA Rapid Response Mechanism in this case, we are ensuring that businesses consistently and uniformly respect workers’ freedom of association. I applaud this outcome and the efforts of all parties involved.”

The independent Mexican union and the facility engaged in constructive discussions, facilitated by the Government of Mexico, in connection with the USMCA matter.  Actions taken by the facility to address the matter include:
Renouncing a collective bargaining agreement (CBA) it had signed with a union that lacked lawful bargaining authority, and removing that union from the facility;
Reimbursing workers for dues the company had deducted from workers’ paychecks on that union’s behalf;
Remaining neutral in a representational vote that resulted in a landslide victory for the independent union, SNITIS;
Recognizing SNITIS as the workers’ bargaining representative, and granting SNITIS access to the facility;
Offering reinstatement and backpay to 26 workers who were allegedly terminated for participating in union activity;
Reimbursing workers for wages unpaid as a result of a work stoppage at the facility; and
Negotiating a new CBA with SNITIS, which, if submitted by SNITIS to a worker vote and approved by workers, would result in a significant wage increase.
In addition, the Government of Mexico will conduct further inspections at the facility to monitor the situation. 
 
Background
 
The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC).  In April 2022, SNITIS (a Mexican Labor Union) and Rethink Trade (a U.S.-based policy organization) filed with the ILC a USMCA RRM petition concerning Panasonic Automotive Systems, an automotive parts producer in Reynosa, Mexico.  The petition alleged that workers at the Reynosa facility were being denied the right of free association and collective bargaining.  The ILC reviews RRM petitions and accompanying information that it receives within 30 days.  The ILC determined, in response to the petition, that there was sufficient credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms.  As a result, the United States Trade Representative submitted a request to Mexico to review the matter.  The Government of Mexico found that the situation had been resolved during the review period.
 
As a result of the above actions taken by the facility to resolve the action, the United States agrees that there is no ongoing denial of rights.  Ambassador Tai’s letter directing the Secretary of the Treasury to resume liquidation of entries of goods from the Panasonic Automotive Systems facility is available here <https://ustr.us7.list-manage.com/track/click?u=b58f12c4da47019d98a1e84ef&id=f91d91da89&e=ce4a1cee7f>.
 
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U.S. Trade Representative Press Office


Arthur Stamoulis
Citizens Trade Campaign
(202) 494-8826




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